Question

] A new smartphone company charges $1000 for their new phone. At this price, they have been
selling 700 phones per month. According to their research, for every $20 price increase, they will lose 10
customers.
a. [1 mark] What is the quadratic equation in factored form that represents their revenue? Hint: the
equation should take the form () = ( )( ).
b. [2 marks] Using this equation, determine the number of price increases that would maximize their
revenue.
c. Based on this number of price increases:
i. [1 mark] What is the smartphone price that maximizes revenue?
ii. [1 mark] How many customers per month will buy it at this price?
iii. [1 mark] What is the maximum revenue per month?

Answer 1

Answer:

Step-by-step explanation:

Given:

1000 = new phone price

700 phones per month

for every $20 price increase, they will lose 10 customers. (View 1)

Assume the number of customers to be x

1000x =  7,00,000

By this equation we can equate the customers to the default price of the smart phone. ( View 2)

Combining both the views:

(x + 20)(x - 10) { equation to find the total revenue.}

I can't solve anymore, this one was tricky..

Cya ;D